Should I be discouraged?

Your thinking too much about it. Just apply. Not to just to one school tho... But several. Back in high school my counselor told me "you should apply to 1 hard school, 3 medium schools and 2easy schools (not community college)" (well... you can change the numbers around but that should be around the ratio) anyways when picking a college its best to go for you dream school... but its better to go for the school that offers the most. After all, a UVA graduate and a IUP graduate are getting the same degree, the same pay, the same job.... However, one might offer a full ride where as the other you'll end up with debt.